Crude Oil Extends Drop Below $58 as IEA Cuts Forecast - Bloomberg

Crude Oil Extends Drop Below $58 as IEA Cuts Forecast - Bloomberg:



"Benchmark U.S. oil prices extended losses below $58 a barrel as the International Energy Agency cut its global demand forecast for the fourth time in five months. 




West Texas Intermediate crude capped a weekly decline of 12 percent while Brent lost 10 percent. The IEA reduced its estimate for oil demand growth in 2015 by 230,000 barrels a day, the agency said in a report today. U.S. output, already at a three-decade high, will continue to rise in 2015, the IEA said.



“In the short term, supply is still stronger than demand,” said Gareth Lewis-Davies, a London-based analyst at BNP Paribas SA. “We are going to see further inventory builds in the first half, hence the realization of further pressure on oil prices.”"



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